Hein, Cahill spar over safety net takeover

Ulster County executive says he planned all along to cover welfare costs of $7 million annually

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Posted Sep. 3, 2014 at 5:35 PM
Updated Sep 3, 2014 at 5:38 PM

Posted Sep. 3, 2014 at 5:35 PM
Updated Sep 3, 2014 at 5:38 PM

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KINGSTON — The final phase of Ulster County’s three-year takeover of Safety Net costs from local municipalities will cost an estimated $7 million, Ulster County Executive Mike Hein says.

But the announcement was met with a sharp criticism from the executive’s political adversary, Assemblyman Kevin Cahill, D-Kingston.

The final third of Ulster County’s takeover is scheduled to begin on Jan. 1, 2015 and Hein urged local municipalities to use the savings to reduce property taxes.

“Beginning Jan. 1, 2015 our Towns will be able to zero out their largest state mandated expense, meaning a savings of millions of dollars every year going forward,” Hein said in a press release.

He criticized the state, saying it’s increased the benefits of those who get receive Safety Net, or welfare, by more than 30 percent then increased the local share from 50 percent to 71 percent.

But Cahill argues that the state has taken over responsibility for all Medicaid administration and growth costs, saving “millions” for counties.

Hein’s administration estimates the total savings to the City of Kingston and towns of Safety Net costs at $13 million. The savings come from cuts the county has made over the years, including privatizing its mental health services and nursing home, said deputy County Executive Ken Crannell.

The safety net takeover became a heated point of debate between Hein and Cahill last year.

Cahill, who said Hein’s office was waffling on a three-year takeover, wanted a legally binding promise from Hein to take over the last third of safety net costs in order for the county to get state approval to charge 1 percent more in sales tax.

Hein has strongly maintained that he never planned to back off the takeover, but the debate led to an impasse that dropped the sales tax rate from 4 percent to 3 percent for a few months and, according to Hein’s office, caused a $5.4 million drop in sales tax collections from year before.

By Wednesday afternoon, Cahill released a statement on the issue, claiming it was Hein’s “highly paid assistants who went around the county threatening to withhold the Safety Net takeover that prompted town supervisors to reach out to my office for help in the first place.”

Ulster County will be the last state in New York to fully takeover the costs of Safety Net from local municipalities.